Why the Western Cape property market is thriving: Insights and trends
Image: Ayanda Ndamane
The Western Cape property market continues to outperform other regions by a significant margin, particularly within the Cape Town metropolitan area, and experts believe this trend is likely to continue.
Lightstone data shows that Western Cape property prices grew by 8.7% in the year to January 2025, compared to the national average of 5.2%.
According to The African Investor, Cape Town residential properties, in June 2025, showed year-on-year price growth of 8.5%. Moreover, Cape Town boasts an average prime property price of R31,000 per square, which is more than double Johannesburg's figure of R14,000.
Particularly telling is that the Western Cape accounted for more than 38% of national real estate transaction value in 2024, according to Stats SA, despite having just 11% of the population.
'This concentration of capital speaks volumes about where investors are placing their confidence,' says Arnold Maritz, of international realtor Lew Geffen Sotheby.
This is especially evident in the luxury segment.
'In our office, buyers with budgets exceeding R15 million have become the norm rather than the exception. We repeatedly see clients inquiring about specific properties, only to learn they were sold within days - sometimes hours - of listing. The speed at which quality stock moves in these neighbourhoods is remarkable,' Maritz explained.
He added that buyers also displayed a growing appetite for luxury residential estates in the Southern Suburbs, with buyers being drawn to their combination of space, privacy and proximity to top schools and the CBD.
Why Cape Town property prices are outpacing other cities
The reasons for Cape Town's property boom are numerous, and now include greater comparative incomes.
According to the latest figures from Stats SA, Cape Town's average household income of around R387,000 per year is higher than any other city in the country, with Johannesburg trailing at R282,000.
Cape Town's unemployment rate of 23.4% is also well beneath the national average, and the nature of employment also differs markedly. For instance, formal sector jobs in the Western Cape grew by 3.1% in 2024, versus 1.2% nationally.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
The so-called 'semigration' trend is playing a significant part in driving up property prices in the region. Stats SA reveals that the Western Cape experienced a net migration of 92,000 working age adults in the past two years, with some 68% holding tertiary qualifications and 42% occupying professional or managerial roles.
But will the bubble burst anytime soon?
'As with any strong market, questions arise about sustainability. Yet most indicators suggest Cape Town's growth has firm foundations,' Lew Geffen Sotheby's commented.
According to an FNB Property Insights report, economists are predicting a 7-9% annual price growth in their base case scenarios, with potential for 10-12% in the prime segment.
Lightstone says the 'undersupplied' market continues to present opportunities, particularly in the Southern Suburbs, where areas like Bishopscourt, Constantia, and Claremont have seen significant yields.
Cape Argus
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
10 hours ago
- IOL News
Win big with Cell C: R10 million in prizes awaits you
Cell C is giving South Africans 10 million reasons to stay connected with the return of its thrilling Win Big campaign – Amplified. Why settle for small wins when you can have amplified ones? Cell C is cranking up the volume on rewards - from instant prizes to R100,000 in cash, this campaign is designed to change lives. Whether you're recharging, upgrading, or signing up, every move you make brings you closer to winning life-changing rewards from instant vouchers to R100,000 in cash. This year's Win Big campaign is bigger and better across every touchpoint, with over R10 million in prizes up for grabs across national, regional, in-store, and radio platforms. Here's how to Win Big – amplified style: Recharge, upgrade, or sign up – each action is an entry. Score instant vouchers and weekly in-store wins of R1,000. Win big with cash prizes of up to R100,000 – and possibly your contract for life! And there's more!
The Citizen
11 hours ago
- The Citizen
Dream big, win bigger: R10 million in amplified prizes up for grabs with Cell C!
At Cell C, nothing should stop you from dreaming big and winning bigger! Cell C is giving South Africans 10 million reasons to stay connected with the return of its thrilling Win Big campaign – Amplified! Why settle for small wins when you can have amplified ones? Cell C is cranking up the volume on rewards – from instant prizes to R100,000 in cash, this campaign is designed to change lives. Whether you're recharging, upgrading, or signing up, every move you make brings you closer to winning life-changing rewards from instant vouchers to R100,000 in cash. This year's Win Big campaign is bigger and better across every touchpoint, with over R10 million in prizes up for grabs across national, regional, in-store, and radio platforms. Here's how to Win Big – amplified style: Recharge, upgrade, or sign up — each action is an entry. Score instant vouchers and weekly in-store wins of R1,000. Win big with cash prizes of up to R100,000 — and possibly your contract for life! And there's more! Radio listeners nationwide can send voice notes or WhatsApps to participating stations, sharing what they dream of winning. The most moving and creative entries stand a chance to win up to R10 000 — with bonus cash for both new and loyal Cell C customers. Whether you're prepaid, postpaid or Fibre, new to the network or a long-time customer, now's the time to make your dreams come true. At Cell C, nothing should stop you from dreaming big and winning bigger! Ready to amplify your chances of winning? Visit your nearest Cell C store, dial 084 145, or go to to sign up, upgrade, or recharge and stand a chance to claim your share of R10 million in prizes. Visit for more information. T&Cs Apply
IOL News
14 hours ago
- IOL News
Urgent reforms needed as South Africa faces deepening unemployment crisis
South Africa's jobs crisis: 75,000 jobs lost in Q1 2025 Image: File The South African economy in bleeding jobs at an alarming rate and what was once a crisis is turning into a an unemployement emergency with experts warning of resultant civil instability. Nearly 75,000 formal sector jobs lost in the first quarter of 2025 alone, and 95,000 compared to the same time last year, according to Stats SA. Key sectors like trade, mining, construction, and community services were hardest hit, with only manufacturing showing slight growth. The figures have prompted alarm from economists, labour unions, and mental health experts, who warn that without urgent reform, the country faces entrenched unemployment and broader social fallout. Slow economic growth, policy uncertainty, skills mismatches, and restrictive labour regulations are all seen as major contributors. Abigail Moyo, spokesperson for the trade union UASA, said the latest figures are alarming. 'The Quarterly Employment Statistics reported by Stats SA indicate a contraction in employment, reversing the progress made towards the end of last year. Formal sector employment lost 74,000 jobs in the first quarter, and year-on-year data reveals that 95,000 jobs were lost between March 2024 and March 2025.' She added: 'The industries most affected include trade, community services, mining, electricity, construction, and business services. Only manufacturing showed slight growth, with a gain of 2,000 jobs.' Moyo warned that this will worsen already dire conditions for many workers. 'The current economic outlook is not encouraging and fails to inspire hope... This situation exacerbates the insecurity faced by workers who are already under pressure from high living costs. 'We cannot continue to operate on the brink of a failing economy without any prospects for a better future. We urge both the government and employers to collaborate with trade unions and other stakeholders to rebuild the labour market, focusing on decent work, fair wages, and sustainable employment.' Economist Ulricht Joubert pointed to a range of interlinked problems, beginning with poor economic growth. 'We had a growth rate in total of 0.6% last year compared to a growth in the population of one would guess around about 2%.' He warned that migration and an inflexible labour dispensation were worsening joblessness: 'There is still an influx of people from the rest of Africa into South Africa and that increases the availability of labour in South Africa. If we look at the labour dispensation, where the government tries to instruct and regulate who can be employed in South Africa, and that has a limiting effect. 'The economy never asks you, how old are you? What sex are you? What race are you? The economy only asks, are you capable of doing this specific job in such a way that it is competitive,. domestically and internationally.' He also criticised the cost pressures created by unions and minimum wage regulation: 'If we have to employ people at these minimum wages - Why should I employ a person when a machine can do the job? The productivity has declined from the time that the minimum wages have been imposed on the agricultural sector. 'We have to get the education and training system in South Africa on a footing where employers will say, oh, but you know, if we employ this person because of his qualifications, because of his training, we'll be able to do the job in a competitive way.' He further raised concern over low investment. 'Yes, it's at an unfortunate, very low level if we don't invest, then it creates a problem down the line. Government policies create an uncertain environment and because of that, especially international companies say, "but why? Why should I invest?' Economist Dawie Roodt was unequivocal in placing the blame on the ruling party. 'Why are we losing the jobs in the South African economy? Well, agriculture, is a very volatile sector, so it doesn't really tell us much. So don't look at agriculture, it's all over the place.' 'Manufacturing is much more important because manufacturing is an indicator of where we want economic growth, that's where we can create a relatively large number of jobs, and that is not growing. In fact, we are de-industrialising, we are losing our factories in South Africa.' 'And there's one reason and that's the ruling party. They are simply following the wrong macro-economic policies, and as long as they keep on doing that, the economy is not gonna grow, and as long as the economy is not growing, we're not gonna create jobs in the economy.' Roodt believes the focus needs to shift entirely. 'Actually, we should forget about job creation, and we should put all effort into growing the economy and jobs will look after themselves.' 'The underlying reason is just a government that's not doing what it's supposed to be doing and that's to create an environment that's conducive to economic growth. We certainly do not have that. That's the reason.' Professor Renata Schoeman, head of the MBA in Healthcare Leadership at Stellenbosch Business School, highlighted the emotional cost of rising unemployment. 'Seeing what's going on around them and being faced with colleagues losing their jobs, there is definitely an increase in disengagement.' 'People work harder and harder because they are so scared of losing their jobs, they do not actually take the necessary breaks.' 'The fallout of this additional stressor, the financial stresses, the sense of failure as a provider and especially if they are unsuccessful in finding employment again.' 'Make sure that you don't expect other people to do the work of two or three employees, you burn them out as well.' 'It is very difficult to keep focusing on mental health when someone is in survival strategy... that you do invest in the mental health of your employees.' 'It's just your ethical obligation in terms of leadership, take care of those remaining and those that's going.' Weekend Argus
